TI calculators are the best-known face of Texas Instruments, but the company does much more. Image: Flickr/laffy4k
Texas Instruments, best known for its calculators, is facing multiplying challenges. The analog chips made by Texas Instruments are used in a wide variety of electronic systems across the world. Though the chipmaker is reporting earnings, Texas Instruments stocks are falling. Combined with a controversy over programming blocks, Texas Instruments is facing difficulties on many fronts.
Texas Instruments revenue
In a quarterly report released mid-July, Texas Instruments reported rising income and revenue. The net income of the company was approximately $769 million in the second quarter. Revenue was approximately $3.5 billion in that same time period. The company also estimated that in the third quarter of this year, it will do equally well. Revenue is expected to be in the $3.85 billion range. The chips built by TI can be found in air traffic control systems, medical equipment and some consumer goods.
Stock decline of Texas Instruments
Despite the positive earnings report and estimates, the stock price of Texas Instruments dipped. After-hours trading resulted in a 6 percent dip in the share price of Texas Instruments. This dip in stock price is a result not of the earnings estimates for TI, but for its competitors. Intel, the main competitor for Texas Instruments, has been able to report very good earnings and growth numbers that have left tech investors skittish about TI.
Locking down graphing calculators
Texas Instruments is also facing outrage of many programmers. Hobbyist programmers that have long built games, programs and specialty apps for the powerful Texas Instruments graphing calculators. The latest TI-Nspire calculators, however, have been locked so they can’t use that programming. Third-party development is almost entirely prevented on these calculators. This is creating controversy within tech communities because some say that they have bought and paid for the devices, and they should be able to do what they want with them. Others say that Texas Instruments has the right to prevent their devices from being used for things they were not intended for. What do you think?
Does a manufacture have a right to limit how a consumer uses their product? Does the purchase of a product relieve the consumer of any legal consequences or responsibility for how the product is used?
There two basic methods by which a consumer can acquiring the use of a product. They can purchase the product or they may lease it. In either case there is usually some form of document that defines the terms and conditions of the transaction. Either a warrantee or least contract. In either case there is legally binding conditions on both the manufacture and the consumer.
This brings to mind the another question. Can a manufacture dictate usage beyond the terms of a warrantee or lease?
TI is selling the calculators so have no rights other that what is spelled out in their warrantee. They may choose to void due to any by any activity defined in its terms and conditions. Which could include installing third party programs or anything other than TI provided or approved programs. This would be within their right as the manufacture. A consumer violating the terms if the warrantee would have no recourse for repair or replacement of the device. In other words, violate the warrantee and you are on your own. You still own the device and can use it as you wish. Other that this, a user who purchases a device can use it in any way they desire as long as they are not violating any laws by doing so.
If the devices were leased then it would be a similar situation. Under lease terms they could define how the devices are to be used. Violation of the terms would constitute violation of the lease agreement and the penalties defined in the lease could be enforced.
If TI chooses to block certain capabilities of the device, they have a right to do so. Such a block is within the their legal and moral desecration. Consumers have the right to not purchase the device if they object to the limitation imposed.
From a consumer good will stand point there is reason for TI to reconsider their position. Placing limitations could cause their calculators to lose favor with some segments of their customer base. They need to decide if the they if losing that segment or a portion of it is and acceptable consequence based on the actual intend of the limitation.
To answer the original questions:
Does a manufacture have a right to limit how a consumer uses their product? Absolutely.
Does the purchase of a product relieve the consumer of any legal consequences or responsibility for how the product is used? Absolutely.
Can a manufacture dictate usage beyond the terms of a warrantee or lease? Absolutely not.